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Problem 1: You have $2,500 in a savings account. The money is earning 4.8% per year, compounded quarterly. How many years will it take for your money to triple?
A. approximately 23
B. approximately 47
C. approximately 92
D. approximately 184
E. none of the above
Problem 2: Refer to question #2 above. If the compounding were changed from quarterly to semiannually, then the time needed for your money to triple would:
A. increase because it is compounding more often.
B. decrease because it is compounding more often.
C. increase because it is compounding less often.
D. decrease because it is compounding less often.
E. do none of the above.
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